Saudi Arabia Sustainable Packaging Market Research Report Forecast: (2025-2030)

Market Insights & Analysis:  Saudi Arabia Sustainable Packaging Market (2024-30):

The Saudi Arabia Sustainable Packaging Market size was valued at around USD 4.84 billion in 2023 and is projected to reach around USD 7.12 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 5.49% during the forecast period, i.e., 2024-30. The increase in the market is because of the growing worries concerning environmental pollutants, growing sustainability efforts, authorities' guidelines for using plastics, and so forth. Also, the Saudi Arabian authorities reported a massive quantity of waste generation at some point of the beyond few years, necessitating adopting sustainable packaging solutions. It is because unsustainable plastic packaging solutions have been resulting in immoderate waste accumulation, which has been inflicting severe damage to the surroundings. Also, both purchasers and organizations have turned out to be aware of the environmental impact of plastic waste pollutants. Hence, the developing consumer consciousness has drastically enhanced the adoption of sustainable packaging solutions throughout Saudi Arabia.

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Furthermore, the Saudi Arabian government has been introducing several policies and efforts to boost foreign direct investments in the country. For this, the government focused on improving the business environment in the country through reducing taxes and improving share foreign ownership. These efforts have been observed to attract several key global players in Saudi Arabia. Thus, several global companies have expanded their manufacturing facilities, which has been improving the production capacities of products like automotive parts and components, chemicals, etc. Consequently, the amplifying production capacities are anticipated to drive the demand for sustainable packaging market in Saudi Arabia in the coming years.  

Saudi Arabia Sustainable Packaging Market Driver:

Growing Demand from the Food & Beverage Sector – In Saudi Arabia, ready-to-eat convenience foods have been in huge demand for the last couple of years. This was due to the rise in the working population and an improving share of women workers in the country. Therefore, with minimal time left for food preparation, consumers have started shifting toward convenience food items. Moreover, there has been a rise in tourist arrivals within the country due to rising government efforts. Since tourists demand ready-to-eat food items, their demand has shown improvement in recent times. Therefore, with the upward thrust in the adoption of ready-to-eat food items, demand for sustainable packaging solutions is increasing. This has been majorly for cutting down excessive generation of wastes through the disposal of packaging of ready-to-food items. This has therefore expanded the adoption rate of sustainable packaging solutions among ready-to-eat food manufacturers, turning out to be an important marketplace motive force.

Further, observing this fast-growing demand for sustainable packaging solutions in the food & beverage sector, organizations are growing their manufacturing capacity. Hence, an increase in the manufacturing unit could provide the possibility for companies to meet the growing demand for packaging solutions in the food & beverage industry. Thus, the same might support the market growth of sustainable packaging solutions across Saudi Arabia.

Saudi Arabia Sustainable Packaging Market Opportunity:

Adoption of Edible Packaging Solutions to Offer Lucrative Growth Opportunities – With widespread investments in research & development activities, the market is experiencing the release of exclusively effective packaging solutions that generate minimum waste in the environment. Recently, the development of edible packaging solutions has gained prominent interest, particularly from the food industry. Also, these edible packaging solutions are claimed to generate net-zero waste and are completely degradable. Hence, this is expected to improve their adoption across Saudi Arabia in the coming years. Therefore, this would create considerable opportunities for market growth in the coming years.

Saudi Arabia Sustainable Packaging Market Challenge:

High Costs of Sustainable Packaging Hindering Market Growth – Sustainability packaging materials, such as biodegradable plastics or recycled paper, have most of the time been more expensive. Much of the high cost has primarily been because such materials are usually derived from renewable resources or recycled content, which is rather pricey to source and process. Also, sustainable packaging solutions usually require high-end machinery and solutions for production, since they are normally made through biodegradable raw materials that require additional processing. Thus, this has resulted in a higher price of sustainable packaging solutions than the traditional ones, which, in turn, has been serving as the prime barrier to their mass adoption throughout the country.  

Saudi Arabia Sustainable Packaging Market Trend:

Biodegradable Packaging Gaining Traction – For the last few years, the need for biodegradable packaging solutions has been a key market trend in Saudi Arabia. This has been especially pushed by the increasing efforts of governments to improve the adoption of sustainable solutions towards accomplishing a circular economic system and reducing waste generation. For instance,

• In 2024, the Saudi Standards, Metrology, and Quality Organization announced a regulation to promote the transition toward biodegradable plastic from non-biodegradable plastic and also introduced a Biodegradable Plastic Logo service for applicants.

Hence, with such efforts, the industrial sector in the country including food & beverage companies, chemical companies, etc., has started transitioning toward the usage of biodegradable packaging solutions. Thus, this increasing demand has supported the growth of the Saudi Arabia Sustainable Packaging Market over the historical years. Moreover, incoming regulations to escalate the adoption of sustainable packaging solutions are expected to further boost the demand for biodegradable packaging solutions in Saudi Arabia, which would continue to be a prominent market trend.

Saudi Arabia Sustainable Packaging Market (2024-30): Segmentation Analysis

The Saudi Arabia Sustainable Packaging Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Type:

• Reusable Packaging
• Recyclable Packaging
• Biodegradable Packaging
• Edible Packaging
• Others

Of these, the recyclable packaging segment has captured the largest market share. This is majorly attributed to the growing tasks the industrial units in the country have been taking to minimize waste produced through packaging. Further, because of the rise in disposable earnings, younger demography, and greater interest in personal care, the demand for personal grooming objects has accelerated. It's because of this ever-growing demand for skincare, makeup, and so forth., that the manufacturing of cosmetics in the country has increased at a quick pace. Besides, the cosmetic producers in Saudi Arabia began indulging in recyclable packaging solutions in efforts to make the country sustainable. Therefore, because of the high demand for cosmetic products and their production, the demand for recyclable packaging solutions would surge in the coming years as well.

Based on Application:

• Food & Beverage
• Personal Care and Cosmetics
• Pharmaceutical/Healthcare
• Automobile & Electronics
• Others

Out of them, the Pharmaceutical/Healthcare segment has come out as one of the distinguished applications in the Saudi Arabia Sustainable Packaging Market. The country's government has been making enormous efforts in the last few years to attract pharmaceutical corporations to set up local manufacturing units. This has been on the whole to lessen their reliance on imports of pharmaceutical and healthcare products. Government efforts have thereby attracted a massive range of worldwide pharmaceutical corporations to the country and improved pharmaceutical production. Besides, pharmaceutical companies are accomplishing out vigorously to adopt sustainable packaging solutions to lessen their carbon footprint and beautify sustainability. Thus, with the increase in pharmaceutical production, the demand for sustainable packaging solutions is growing throughout the country, which is ultimately augmenting segmental revenue growth.

Moreover, the production of pharmaceutical products is expected to increase significantly over the next few years too, with increasing investment activities in the sector. For instance,

• In 2024, TVM Capital Healthcare invested around USD 35 million in Boston Oncology Arabia, which is a bio-generic drug manufacturer in Saudi Arabia. This investment would help Boston Oncology Arabia to scale up their manufacturing capacity for its life-saving specialty drugs.

Hence, as the production grows further, the demand for sustainable packaging solutions in this sector would also increase in the forecast years.

Saudi Arabia Sustainable Packaging Industry Recent Development:

• 2024: Napco Group has partnered with SABIC & FONTE to introduce a sustainable bread packaging solution that has been made from fully recycled post-consumer plastic.
• 2023: Tetra Pak Arabia Area has partnered with the UAE-based FMCG company IFFCO Group for the production of sustainable packaging solutions for culinary creams across Saudi Arabia.

Gain a Competitive Edge with Our Saudi Arabia Sustainable Packaging Market Report

1. Saudi Arabia Sustainable Packaging Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Saudi Arabia Sustainable Packaging Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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